Credit-card penetration in India is increasing every year. With a Compounded Annual Growth Rate (CAGR) of 33% between the years 2015 and 2021 (first quarter), the credit card industry is one of the most promising industries in the country. It is anticipated that the CAGR will be expanded from 39.22% in the fiscal years 2022 to 2027 to 39.2%. This is expected from the SBI Card IPO in 2020, which was oversubscribed more than 26 times. In February 2021, 5.5 million credit cards were issued in India (a decrease of 47% compared to the same month the previous year and 22% over the previous month), and the number of active cards now totaled 7.3 billion, a 17% increase in just 12 months. Monthly expenditures per card also increased from Rs. Between February 2021 and March 2022, pay will be between ₹7,600 and ₹13,900.
As the economy is beginning to improve, the credit card industry is anticipated to experience a boom due to increased purchasing power of cardholders and prospects. The credit card market for India is lagging behind that of the United States, but is likely to make a huge leap in the next few years because the proportion of credit cards per hundred people is only 5.5 in the US but is only expected to rise to 3 in India by the year 2021. Credit cards have gained popularity as UPI is now accepted as an alternative payment method, but e-wallets and buy-now pay-later options are often more popular than credit cards while shopping in India.
Issuer Banks
Federal Bank
Federal Bank is a personal area financial institution in India with its headquarters in Aluva, Kerala. It become based in 1945 and currently, it has a pan-India presence with over 1251 branches, 2700 ATMs, and 1662 business correspondents (BCs) across the us of a. The bank offers a wide range of services and products along with private banking, corporate banking, NRI banking, net banking, mobile banking, and treasury. Federal Bank is known for its sturdy technology and patron-centric method. It is one of the leading banks in India that has followed virtual transformation with the aid of introducing progressive products and services to its clients. The bank has obtained several awards and recognitions for its outstanding overall performance and contribution to the banking zone in India.
Federal Bank offers a range of credit cards with different benefits and features, such as cashback, rewards points, travel benefits, and more. Some of the popular Federal Bank credit cards are:
1. Federal Bank Visa Signature Credit Card: This credit card offers accelerated reward points on dining, groceries, and fuel purchases. It also comes with travel insurance and other travel benefits.
2. Federal Bank SBI Credit Card: This co-branded credit card offers rewards points and cashback on various categories such as dining, movies, and fuel. It also has benefits such as lounge access, fuel surcharge waiver, and more.
3. Federal Bank Easy Credit Card: This credit card is designed for beginners and comes with easy eligibility criteria and low annual fees. It offers cashback on fuel purchases and other select categories.
4. Federal Bank Platinum Credit Card: This credit card offers a high credit limit and rewards points on all transactions. It also comes with insurance coverage and other privileges.
Standard Chartered Bank
Standard Chartered Bank is a British multinational banking and financial services company headquartered in London, England. It operates a network of more than 1,000 branches and outlets in more than 60 countries across Asia, Africa, and the Middle East. Standard Chartered Bank offers a wide range of financial products and services, including personal and business banking, wealth management, commercial banking, and investment banking. The bank is focused on emerging markets and has a strong presence in countries such as India, China, and Singapore. Standard Chartered is listed on the London Stock Exchange and also has a secondary listing on the Hong Kong Stock Exchange.
As of 2021, Standard Chartered Bank in India has a community of one hundred branches and two hundred ATMs throughout the u . S . A .. The financial institution serves over 2 million clients in India and gives a number of banking services and products such as private and corporate banking, exchange finance, wealth control, and extra. In terms of monetary performance, the bank reported a earnings of INR 1,414 crore for the economic yr 2020-2021. Additionally, Standard Chartered Bank has been identified for its commitment to sustainability and social duty, receiving several awards for its efforts in those areas in India.
IndusInd Bank
IndusInd Bank is one of the leading personal region banks in India. The following are some of the important thing records related to the financial institution:
- As of March 2021, IndusInd Bank had a complete asset size of INR 2.31 trillion (US$32 billion).
- The bank has a community of over 2,000 branches and a couple of,600 ATMs across India.
- In the economic 12 months 2020-21, the financial institution suggested a internet earnings of INR 2,614 crore (US$360 million).
- The financial institution has a patron base of extra than 30 million and has been developing at a CAGR of 23% over the last five years.
- IndusInd Bank gives a wide range of services and products consisting of savings debts, current debts, credit score cards, personal loans, domestic loans, automobile loans, and greater.
- The bank has received several awards for its virtual tasks and customer support, consisting of the ‘Best Bank for Digital Experience’ award on the 2020 Asiamoney Best Bank Awards.
- IndusInd Bank has a sturdy cognizance on sustainability and has adopted numerous environmental and social tasks, together with the adoption of renewable strength, selling economic inclusion, and supporting schooling and healthcare initiatives.
American Express
American Express is a economic services business enterprise that offers various credit score card and rate card products in India. It has been running in India because 1921 and currently has its headquarters in Gurugram. In 2020, American Express had a market percentage of about 10% of the credit score card industry in India. The corporation has additionally been making an investment in its technology infrastructure to offer greater digital offerings to its clients. Some of the popular American Express credit playing cards in India encompass the Platinum Card, Gold Card, and the Membership Rewards Credit Card. These cards offer diverse perks inclusive of reward factors, cashback, living room get admission to, and travel benefits.
Overall, American Express is a properly-established participant in the Indian monetary services industry with a robust popularity for its premium credit card products and services.
Yes Bank
As of April 2021, Yes Bank is considered one of the most important non-public zone banks in India, with a marketplace capitalization of approximately INR 36,000 crores. The financial institution serves round 2 crore customers thru its 1,050 branches, 1,800 ATMs, and virtual banking platforms.
In terms of financial overall performance, Yes Bank suggested a net profit of INR 1,720 crore for the region ended March 2021, as compared to a lack of INR three,668 crore inside the equal period last year. Its overall belongings, as of December 2020, have been worth INR three,sixty five,176 crores, and its gross non-appearing belongings (GNPAs) ratio stood at 15.36%.
The financial institution has additionally been actively involved in numerous social initiatives, along with helping rural entrepreneurship, providing schooling and skill development to underprivileged groups, and selling sustainable agriculture practices.
HSBC Bank
HSBC (Hongkong and Shanghai Banking Corporation) has been running in India in view that 1853, making it one of the oldest banks inside the country. As of March 31, 2020, HSBC India had a network of 26 branches in 14 towns and employed more than 7,000 human beings. HSBC India’s general property amounted to INR 2,fifty seven,619 crore (US$ 34.15 billion) as on March 31, 2020, in keeping with the bank’s annual report.
The bank gives a range of monetary services and products, which consist of personal banking, agency banking, corporate banking, and wealth control, among others. In 2019, HSBC India turned into ranked as the Best International Bank in India by Asiamoney. The bank became also identified for its virtual abilties and patron-centric method.